Bitcoin is the most well known virtual currency in the world today. Bitcoin is a virtual currency that is based on open source digital project. The Bitcoin was developed by person who we know as Satoshi Nakamoto. The real name of Satoshi Nakamoto is not known. In his profile he presents himself as 37 years old Japanese male. However his use of English language has lead some analysts to the conclusion that he/she must be from the UK or United States. Actually it is not certain that Satoshi Nakamoto is one person. It's also possible that there is a group of bitcoin founders that use nickname Satoshi Nakamoto.
Each bitcoin is divided to 100 million satoshi. One satoshi is then 0,00000001 BTC. BTC is the official code for Bitcoin virtual currency.
History of Bitcoin
Bitcoin project has started 2008 or earlier. The bitcoin.org domain was registered in August 2008 and first Bitcoins were issued on January 9th 2009. First Bitcoin transfer between users was executed on January 12th 2009. The exchange rate of Bitcoin was defined for the first time in September 2009. The first BTC/USD exchange rate was $1 = 1309,03 BTC.
The start of the Bitcoin was slow and it was only 2010 when first Bitcoin exchange services were opened. The Bitcoin Market and Mt. Gox were the first Bitcoin exchange services. Bitcoin got big public attention for the first time 2011 when media widely reported about the Silk Road -marketplace where drug dealers were using Bitcoins as payment method.
How is value of Bitcoin determined? - Bitcoin value depends on supply and demand of Bitcoins
Bitcoins are not issued by any central bank as traditional currencys. Bitcoins are issued by an open source software based on determined algorithm. This limits the growth of issued Bitcoins. The exchange rates between Bitcoins and traditional currencies are based on supply and demand of Bitcoins in the market places.
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